No Deal Yet for Groupon Shares

By

Rolfe Winkler

October 22, 2011

Groupon may yet stage a huge initial public offering, but that doesn't mean the daily-deal leader will be a bargain for long-term investors.

To get its delayed IPO out the door, Groupon is not only reducing its target valuation—to less than $12 billion from original targets of $20 billion or higher—but it is also limiting the supply of shares it plans to sell to the public. When including options, just 5% of shares outstanding will be...